In a significant development on March 17, Meitu Inc. (1357.HK) announced through an official notice that its wholly-owned subsidiary, Miracle Vision, has executed another major purchase of cryptocurrencies. The subsidiary acquired 16,000 units of Ethereum (ETH) for approximately $28.4 million and 386.08 units of Bitcoin (BTC) for about $21.6 million. This latest acquisition brings Meitu's total cryptocurrency investment to around $90 million, equivalent to roughly RMB 580 million.
Based on the details provided in the announcement, the average purchase price for Ethereum was about $1,775 per unit, while Bitcoin was acquired at an average price of around $55,900 per unit. Notably, this move comes just ten days after the company’s previous crypto purchase, which involved 15,000 ETH and 379.1214267 BTC for a total of $22.1 million and $17.9 million, respectively. In that earlier transaction, the average prices were approximately $1,473 for Ethereum and $47,200 for Bitcoin.
Understanding Meitu’s Cryptocurrency Strategy
Meitu’s recent acquisitions are part of a broader cryptocurrency investment plan approved by the company’s board of directors. According to this strategy, Meitu is authorized to purchase up to $100 million worth of cryptocurrencies using its existing cash reserves. With nearly $90 million already allocated, the company has utilized most of its approved limit, signaling strong confidence in the digital asset space. Beyond mere investment, Meitu has also expressed intentions to explore opportunities within the blockchain industry.
The subsidiary involved in these transactions, Miracle Vision, is registered in Singapore and primarily engages in operating mobile applications, advertising, product marketing, business development, and investment holding. This structure allows Meitu to participate actively in the evolving digital economy while managing potential risks.
Market Context and Bitcoin Price Movements
Bitcoin’s price has experienced notable volatility recently. After reaching an all-time high of over $61,000, it underwent a correction, dipping to around $53,000. Since the beginning of 2025, Bitcoin’s value has seen rapid appreciation: it surpassed $30,000 in early January, broke through $40,000 within a week, reached $50,000 by mid-February, and hit $60,000 in March. Following Meitu’s announcement, Bitcoin was trading just below $55,000.
This price action highlights the dynamic nature of cryptocurrency markets, where institutional investments like Meitu’s can influence short-term sentiment and trading activity. For companies venturing into crypto, timing and price levels are critical considerations.
Meitu’s Historical Ties to Blockchain and Crypto
Meitu and its affiliated entities have shown interest in blockchain technology and cryptocurrencies for some time. The company has invested in blockchain-related businesses, though it has also faced controversies, including being mistakenly linked to initial coin offerings (ICOs). For instance, BEC (Beauty Coin) was once rumored to be a Meitu-backed blockchain project, but the company’s chairman, Cai Wensheng, publicly denied these claims.
Cai Wensheng himself is an active investor in the cryptocurrency sector. He has personal investments in major crypto exchanges and blockchain ventures. Notably, he is an investor in the prominent cryptocurrency exchange OKX. Other platforms, such as MXC Exchange, have also reported receiving investments from him. Additionally, Longling Capital, founded by Cai, has invested in blockchain projects like the trading platform FCoin.
These connections illustrate Meitu’s deep-rooted interest in the crypto ecosystem, extending beyond corporate investments to personal involvement by its key executives.
What Drives Corporate Crypto Investments?
Companies like Meitu are increasingly considering cryptocurrency investments as part of their treasury management strategies. The potential for high returns, diversification benefits, and exposure to innovative technologies are common motivations. However, such investments also come with risks, including price volatility, regulatory uncertainty, and security concerns.
For Meitu, the decision to invest in Bitcoin and Ethereum aligns with its goal of embracing technological trends and enhancing shareholder value. The company’s proactive approach reflects a growing trend among publicly listed firms to allocate resources to digital assets.
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Frequently Asked Questions
Why is Meitu investing in cryptocurrencies?
Meitu aims to diversify its cash reserves and gain exposure to the growing digital asset market. The company believes in the long-term potential of cryptocurrencies and blockchain technology, both as an investment and a strategic business area.
How does Meitu manage the risks of crypto investments?
The company uses its subsidiary, Miracle Vision, to handle these transactions. Investments are made within a board-approved framework with clear limits, and the company relies on its existing cash reserves, avoiding leverage to mitigate financial risk.
What impact do these purchases have on Bitcoin’s price?
Large institutional purchases can create upward pressure on prices due to increased demand. However, cryptocurrency markets are influenced by many factors, including global regulations, investor sentiment, and macroeconomic trends.
Will Meitu continue buying more cryptocurrencies?
Given that the company has nearly used its authorized $100 million limit, further purchases are possible but subject to market conditions and the company’s strategic priorities.
Is Meitu developing its own blockchain products?
While Meitu has expressed interest in entering the blockchain industry, no specific products have been announced yet. The current focus remains on investment through its subsidiary.
How do investors view Meitu’s crypto strategy?
Reactions are mixed. Some see it as a forward-thinking move, while others caution about the volatility and regulatory risks associated with cryptocurrencies. Meitu’s stock price has shown sensitivity to these announcements.